scholarly journals Government borrowing as a Ponzi scheme: the case of Bangladesh

2021 ◽  
Vol 10 (1) ◽  
pp. 81-86
Author(s):  
Syed Yusuf Saadat
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Interest Rate ◽  
Real Interest Rate ◽  
Government Debt ◽  
Economic Growth Rate ◽  
The Real ◽  
Ponzi Scheme ◽  
The Government

This study investigates whether government borrowing can be likened to a Ponzi scheme which will allow the government to roll-over its debt perpetually. The results show that, on the basis of the condition of maintaining real economic growth rate above and beyond the real interest rate on government debt, it will not be possible to sustain a perpetual Ponzi scheme of all four types of National Savings Certificates in Bangladesh. The government’s debt may be rolled over perpetually for two types of National Savings Certificates, following the condition outlined in Ball, et al. (1998), or for three types of National Savings Certificates following the condition outlined in Mehrotra (2017). 

scholarly journals Factors affecting stock market index volatility: Empirical study

2021 ◽  
Vol 10 (3) ◽  
pp. 169-176
Author(s):  
Mohammed Ali Al-Rimawi ◽  
Thair Adnan Kaddumi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Foreign Investment ◽  
Inflation Rate ◽  
Market Price ◽  
Economic Growth Rate ◽  
Macroeconomic Variables ◽  
The Impact

How is stock market price volatility affected, and what is the nature of the impact that macroeconomic variables do on the stock market price direction? The main objective of this study is to investigate the impact of some selected macroeconomic variables (inflation rate (INR), interest rate (IR), economic growth rate (EGR), and foreign investment (FI)) on Amman Stock Exchange (ASE) fluctuation for the period 1999–2018. The information is based on the annual data published by industrial companies listed at ASE. The study adopted a descriptive-analytical approach, also simple and multiple linear regression analysis was employed for the mentioned purpose (Nurfadilah & Samidi, 2017). The results revealed that there is no statistically significant impact of INR, IR, EGR, and FI collectively on ASE performance (Niewińska, 2020). Individually, the results indicated that there is a statistically significant impact of all variables (INR, IR, EGR, and FI) on ASE performance. Additionally, the results concluded that foreign investment, portrayed the highest impact factor on ASE performance, followed by a change in average interest rate, then inflation rate, and the least impact attributes to the economic growth rate. Finally, the research recommends that Jordanian banks should reduce the lending interest rate to enhance investment in securities and improve economic growth rate, also Jordanian authorities should encourage foreign direct and indirect investment and make more efforts to attract more foreign investment, either in the form of tax incentives or by extending finance at low-interest rates.

Antecedents of FDI options by Thai public firms

2016 ◽  
Vol 39 (3) ◽  
pp. 310-328
Author(s):  
Nattharika Rittippant ◽  
Abdul Rasheed
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Real Options ◽  
Empirical Evidence ◽  
Economic Freedom ◽  
Ownership Concentration ◽  
Economic Growth Rate ◽  
Content Type ◽  
The Real ◽  
Industry Competition

Purpose – This paper aims to develop and test a real-options model investigating the antecedents predicting the types of options exercise (i.e. growth, delay and exit options) by multinational enterprises (MNEs) after their initial foreign direct investment (FDI) announcements. Firm-, industry- and country-specific factors that influence the real options’ processes and different subsequent options to exercise were examined. Design/methodology/approach – Binomial and multinomial logistic regressions were performed on the data collected from 281 pairs of initial FDI (mostly within Asia) announcements and subsequent announcements regarding further investment decisions by 41 Thai MNEs listed in the Securities Exchange of Thailand for 1995-2005. Findings – The empirical evidence shows that host country factors (i.e. economic growth rate and economic freedom), industry competition and ownership concentration have significant effects on the MNEs’ further decisions on whether to grow, delay or exit out of their initial FDI. Originality/value – The findings of this study suggest that the options’ lens is an appropriate approach to study managerial decisions and actions in the face of uncertainty. While the majority of prior empirical literature has dealt with situations that involve option creation, this study goes a step further by examining decisions subsequent to option creation. Option creation is not an end in itself, and only by studying subsequent exercise of options, one can fully appreciate the value of the real options’ approach. The empirical evidence from this study showed that the host country’s factors (i.e. economic growth rate and economic freedom), industry competition and ownership concentration have significant effects on the MNEs’ further decisions on whether to grow, delay or exit out of their initial FDI.

HAMBATAN DAN PROSPEK USAHA MIKRO KECIL KECAMATAN SINGINGI KABUPATEN KUANTAN SINGINGI

2010 ◽  
Vol 9 (2) ◽  
pp. 173
Author(s):  
Qomariah Lahamid ◽  
Julina Julina
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Family Income ◽  
Raw Materials ◽  
Major Obstacle ◽  
Future Prospects ◽  
Economic Growth Rate ◽  
Main Motivation ◽  
The Government ◽  
Micro Enterprises

This study aims to identify barriers and prospects for Small Micro Enterprises (SMEs) based on sex in the District of Singingi. The data collected by observation, interview and questionnaire. The result showed that the owners of SMEs in Singingi Regency dominated by men but not apart from the contribution of the woman (wife). The major obstacle is the lack of capital to develop the business. Other barriers such as availability of raw materials, equipment, technology, and skills possessed by SMEs. Although there are some obstacles, but they still want to maintain the business as their main motivation is to increase family income. Future prospects of SMEs will be better when it get serious attention from the government, especially when viewed from the economic growth rate reached 6 percent in that year provide the opportunity for absorption of industrial goods produced by SMEs.

scholarly journals Why House Prices Increase in the COVID-19 Recession: A Five-Country Empirical Study on the Real Interest Rate Hypothesis

Urban Science ◽  
2021 ◽  
Vol 5 (4) ◽  
pp. 77
Author(s):  
Chung Yim Yiu
Keyword(s):  
Economic Growth ◽  
New Zealand ◽  
Interest Rate ◽  
Fixed Effects ◽  
Real Interest Rate ◽  
House Prices ◽  
House Price ◽  
The United States ◽  
Housing Affordability ◽  
The Real

There are substantial rebounds in house prices in many developed economies after the outbreak of COVID-19. It provides a special opportunity to test the real interest rate hypothesis empirically as a “synchronized” price rebound implies a common cause of house price hikes across the economies. This study conducts a panel regression analysis on five economies, namely Australia, Canada, European Union, New Zealand, the United Kingdom, and the United States of America, to test the hypothesis. The data range from 2017Q1 to 2021Q1. The results confirm that the real interest rate imposes a negative and significant effect on house price growth rate after controlling for economic growth factors, unemployment factors, and cross-country fixed effects. The empirical result of the five housing markets shows that a 1% fall in the real interest rate caused a 1.5% increase in house prices, ceteris paribus, in this period. It also provides casual evidence refuting the economic growth hypothesis and the migrant hypothesis in New Zealand. The results provide far-reaching practical implications on housing policy and on the ways forward to solve housing affordability problems.

scholarly journals Primary Fiscal Performance, Economic Growth, and Public Debt in Lebanon

2021 ◽  
Vol 15 (2) ◽  
pp. 187-197
Author(s):  
Carole Ibrahim
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Public Debt ◽  
Debt Crisis ◽  
Economic Growth Rate ◽  
Fiscal Performance ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short Run ◽  
The Government

Lebanese public debt has been accumulating since 1990, after the end of the civil war. Recently, concerns about the ability of the government to keep servicing its debt have emerged, particularly because the debt-to-GDP ratio reached almost 147% at the end of 2018. This study aims to examine whether a cointegrating relationship exists among primary fiscal performance, real economic growth, and public debt in Lebanon using an autoregressive distributed lag (ARDL) model between 2000 and 2018. The ARDL results suggest the non-existence of a cointegrating relationship and hence the unsustainability of the Lebanese public debt. The evidence of the short-run estimation indicates that better primary fiscal performance and a higher economic growth rate reduce Lebanese public debt in the short run. This study proposes that immediate reforms that increase the primary fiscal surplus and attract investors are crucial to prevent a debt crisis in the country.

scholarly journals Indonesia’s Economic Growth Forecasting

2019 ◽  
Vol 3 (2) ◽  
pp. 134
Author(s):  
Muhammad Teguh ◽  
Abdul Bashir
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Development Process ◽  
Economic Resources ◽  
Economic Growth Rate ◽  
Economic Plan ◽  
Real Gdp ◽  
The Government

The high economic growth is very important for Indonesia to accelerate the development process at this period. Although, the growth rate was reached at 5.17 % in 2018 is likely high enough, some domestic economists even point out, it really can be raised to a higher level. This research tries to investigate and formulate again Indonesia’s economic growth rate in 2018 and forecast it for 2019. By doing analysis recent real GDP data by industrial origin and by type of expenditures, and also consider all of the available potential economic resources, this research shows that Indonesia’s economic growth rate could stand at 6.03 % in 2018 and also at 6.03 % in 2019. Anyway, the government need a good economic plan and consistently performing appropriate strategies which are suited to targets in order to have rapid and stable economic growth rate

scholarly journals On the Optimal Inflation Rate

2016 ◽  
Vol 106 (5) ◽  
pp. 484-489 ◽  
Author(s):  
Markus K. Brunnermeier ◽  
Yuliy Sannikov
Keyword(s):  
Growth Rate ◽  
Interest Rate ◽  
Portfolio Choice ◽  
Capital Investment ◽  
Real Interest Rate ◽  
Physical Capital ◽  
Individual Agent ◽  
The Real ◽  
Portfolio Decisions ◽  
Pecuniary Externality

In our incomplete markets economy households choose portfolios consisting of risky (uninsurable) capital and money. Money is a bubble, it has positive value even though it yields no payoff. The market outcome is constrained Pareto inefficient due to a pecuniary externality. Each individual agent takes the real interest rate as given, while in the aggregate it is driven by the economic growth rate, which in turn depends on individual portfolio decisions. Higher inflation due to higher money growth lowers the real interest rate on money and tilts the portfolio choice towards physical capital investment. Modest inflation boosts growth rate and welfare.

scholarly journals The New Way: How to Achieve Indonesia Higher Economic Growth in 2020

2020 ◽  
Vol 9 (1) ◽  
pp. 105-111
Author(s):  
Rizal Ramli
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Manufacturing Industry ◽  
Economic Conditions ◽  
Industry Growth ◽  
Processing Industry ◽  
Economic Growth Rate ◽  
The Third ◽  
Industry Sector ◽  
The Government

Rizal Ramli, a prominent national figure, senior technocrat and economist, argues that the government must reverse the logic built so far: Indonesia must first increase its economic growth to above 7%, then investment will surely come again. This paper is a his view of the economic conditions of the Jokowi era and how to rebuild Indonesia's economy going forward to rise from an alarming slump So far, he argues, deindustrialization has accelerated in the Joko Widodo era. The setback is marked by growth in the manufacturing industry sector until the third quarter of 2018 was 4.3% slower than the growth in the same period in 2017 at 4.8% and the processing industry growth rate is 4.3%, lower than the economic growth rate of 5%.

Sign in / Sign up

Export Citation Format

Share Document